This section surveys the history of the Belgian territories after 1579. For information concerning the period prior to that date, see Low Countries, history of.

After the Burgundian regime in the Low Countries (1363–1477), the southern provinces (whose area roughly encompassed that of present-day Belgium and Luxembourg) as well as the northern provinces (whose area roughly corresponded to that of the present-day Kingdom of the Netherlands) had dynastic links with the Austrian Habsburgs and then with Spain and the Austrian Habsburgs together. Later, as a consequence of revolt in 1567, the southern provinces became subject to Spain (1579), then to the Austrian Habsburgs (1713), to France (1795), and finally in 1815 to the Kingdom of the Netherlands. While Luxembourg remained linked to the Netherlands until 1867, Belgium’s union with the Netherlands ended with the 1830 revolution. Belgian nationality is generally considered to date from this event. Throughout the long period of foreign rule, the southern part of the Low Countries generally preserved its institutions and traditions, and only for a short interval, under the First French Republic and Napoleon, could integration with an alien system be enforced.

The Burgundian period, from Philip II (the Bold) to Charles the Bold, was one of political prestige and economic and artistic splendour. The “Great Dukes of the West,” as the Burgundian princes were called, were effectively considered national sovereigns, their domains extending from the Zuiderzee to the Somme. The urban and other textile industries, which had developed in the Belgian territories since the 12th century, became under the Burgundians the economic mainstay of northwestern Europe.

The death of Charles the Bold (1477) and the marriage of his daughter Mary to the archduke Maximilian of Austria proved fatal to the independence of the Low Countries by bringing them increasingly under the sway of the Habsburg dynasty. Mary and Maximilian’s grandson Charles became king of Spain as Charles I in 1516 and Holy Roman emperor as Charles V in 1519. In Brussels on Oct. 25, 1555, Charles V abdicated the Netherlands to his son, who in January 1556 assumed the throne of Spain as Philip II.

The Spanish Netherlands

Under Spanish rule, discontent increased in the Netherlands and revolution broke out in 1567, but the union between the south and the north could not be maintained after the first years of conflict.

The formation of the Union of Arras (Jan. 6, 1579) by the conservative Catholic provinces of Artois and Hainaut (fearing the dominance of more urban, more commercial, and therefore more progressive provinces) enabled the Spanish commander Alessandro Farnese to resume war against the rebellious Protestants. William I (of Orange) emerged as the leader of the latter group, supported by the Union of Utrecht (Jan. 23, 1579), and rallied the numerous provinces that opposed a return to Spanish rule. After a series of sieges, however, Farnese made himself master of many towns in the southern part of the country and finally, on Aug. 17, 1585, recaptured Antwerp, which had closed its gates to rebels and government forces alike. Antwerp’s surrender incited the still resisting northern provinces to close the Schelde River to foreign shipping. From this time onward, the whole of the southern part of the Netherlands once more recognized Philip II as its sovereign. In 1598 Philip II granted the sovereignty of the Netherlands to his daughter Isabella Clara Eugenia and her husband, Archduke Albert VII of Austria.

The United Provinces of the north, also known as the Dutch Republic, were never recovered, and in 1609 Albert was even forced to join them in a 12-year truce. He died in 1621, the same year that the war was resumed. Isabella was, from that time on, nothing more than a governor-general. During the resumed course of the war (1621–48), the region to the east of the Meuse, northern Brabant, and Zeeland were lost. Philip IV of Spain agreed to the new northern boundary of the Spanish Netherlands in the Peace of Westphalia (1648). Hostilities between France and Spain persisted, marked by further losses of territory on the southern border (Artois in 1640 and parts of Flanders in the later 17th century).

Administration

The government of the Spanish Netherlands, though not independent, enjoyed a large degree of autonomy. A governor-general, usually a member of the Spanish royal family, represented the king in Brussels. Local leaders held most positions on the three councils that assisted the governor (the Council of State, the Privy Council, and the Council of Finances). The president of the Privy Council became a kind of prime minister; although holders of this office did not hesitate to show independence of Madrid in order to protect their interests, they remained supporters of absolutism, regularly asserting the authority of the royal government at the expense of regional and local rights. After 1664 the Council of Finances, under its chief official, the treasurer-general, began to function as a sort of ministry of economic affairs. The councils exercised considerable autonomy domestically. With respect to foreign policy, however, they were controlled less by the governor-general than by a Spanish official in Brussels called the secretary of state and war. In Madrid there was a council of state for the Netherlands made up of natives of the Belgian provinces.

The bishopric of Liège (in present-day eastern Belgium) was ruled as a separate principality by its prince-bishops, as had been the case since the Middle Ages. During the revolt against Spain, Liège maintained a strict neutrality and continued to do so through most of the 17th and 18th centuries. Its institutional development paralleled that of the neighbouring regions.

The most important of various representative bodies in the Spanish Netherlands were the provincial estates or assemblies. Their authority to levy and collect taxes enabled them to ensure that a considerable portion of the revenue was spent within the country. A permanent deputation drawn from the estates supervised public works. The States General, consisting of delegates from all the provincial estates, had enjoyed great influence before and during the revolt against Spain. From that time their role diminished, and after 1632 the States General no longer met. Regionalism, deep-rooted in the provinces during the 16th century, gave way in the 17th century to a wider unity. The aristocratic provincial governors revolted against the government’s centralizing policy in the early 1630s but were forced to flee the country for lack of urban support. By 1700 only Hainaut, Luxembourg, Namur, Limburg, and south Gelderland, all of which had proved their loyalty, still had provincial governors.

The supreme authority in judicial matters was the Great Council of Malines, founded in 1504. This body, however, had to defend its jurisdiction against the encroachments of the Privy Council. The provincial courts of justice were the councils of Flanders, Brabant, Namur, Luxembourg, southern Gelderland, Hainaut, and Artois (until 1659). The unique autonomy of the Council of Brabant had been granted by the king in conformity with the provincial liberties of that region. Nevertheless, after 1603 the king was represented in Brabant by financial officials under a procurer-general. In addition to their judicial duties, all these magistrates had increasing administrative functions.

Nearly constant warfare made the administration of the country increasingly difficult. Foreign troops manned the fortresses of Antwerp, Ghent, Ostend, and Charleroi, and other armed forces were raised locally. Government finances, weakened by the loss of revenues from the northern provinces, suffered still further from the enormous military expenditures.

Economic developments

The revolt against Spain in 1567 and the military campaigns it provoked in the following years were detrimental to industrial activity in the southern provinces. Moreover, the Spanish reconquest of the territory caused a major emigration of merchants and skilled artisans. Amsterdam replaced Antwerp as the chief trading centre of Europe. Many towns facing industrial decline reacted by restructuring their economic bases. Antwerp fostered new enterprises in silk weaving, diamond processing, and the production of fine linen, furniture, and lace; in addition, it resuscitated many old export products, such as musical instruments, tapestries, embroidery, and brass. Although English competition had crippled the Flemish woolen industry, Ghent developed a specialization in luxury fabrics, and Brugge in cloth for everyday use.

From the end of the 16th century on, import and export duties provided a new source of revenue. Taxes on foreign trade originated from permits allowing commerce with the rebellious United Provinces of the north. By the middle of the 17th century, these taxes had become real customs tariffs. The financial problems of the government also made the sale of public offices a common practice.

The commercial revitalization of the southern Low Countries, particularly of Antwerp, was gradual, but it no doubt partly explains the flourishing artistic life during the period. This was chiefly evident in the works of the Flemish school of 17th-century painters—among them Peter Paul Rubens, Anthony Van Dyck, and Jacob Jordaens. The ongoing Counter-Reformation stimulated demand for art in the triumphant Baroque style. Rubens, court painter to Isabella and Archduke Albert, made Antwerp one of the cultural capitals of Europe. In the area of scholarship, the Bollandists, a group of Antwerp Jesuits, made valuable contributions to historical methodology.

The Peace of Westphalia (1648), which ended the Eighty Years’ War between Spain and the Dutch and the German phase of the Thirty Years’ War, stimulated economic competition between the countries of northern Europe. As a result, Flemish textile manufacture once again shifted from the towns to the countryside, where production costs were lower. In addition, the burgeoning bureaucracies and new mercantilist policies of rival capitals attracted many Flemish artisans. Emerging fashions abroad, particularly the Enlightenment Classicism and colonial exoticism of France and England, were soon to overtake the Baroque style of the Spanish Netherlands.

The Austrian Netherlands

In 1700 the Spanish Habsburg dynasty died out with Charles II, and a new conflict with France arose. By the Treaty of Utrecht (1713), ending the War of the Spanish Succession, the territory comprising present-day Belgium and Luxembourg (the independent principality of Liège not included) passed under the sovereignty of the Holy Roman emperor Charles VI, head of the Austrian branch of the house of Habsburg.

Under the Austrians, as under the Spanish Habsburgs, the southern Netherlands enjoyed political autonomy. The Austrian government initially modernized the Spanish institutions internally by introducing a new working spirit and more efficient administrative methods. To a greater degree than under Spanish rule, appointments to public offices depended upon competence and dedication. Apart from attempting to subject the provinces and the class-ridden society to absolute imperial power, the Austrian government focused in particular on rationalizing public finances at all levels, on the formation of a dynamic, well-documented bureaucracy, and on the improvement of the country’s infrastructure.

Emperor Charles VI attempted to relieve the economic distress in the southern Netherlands by founding the Ostend Company (1722) to trade with Asia, but England and the United Provinces forced him after a few years to abandon the project. At the death of Charles VI in 1740, the southern Netherlands passed to his daughter Maria Theresa. The War of the Austrian Succession, however, resulted in a new French occupation in 1744. Austrian rule was restored by the Treaty of Aix-la-Chapelle (1748).

The regime of the empress Maria Theresa of Austria enjoyed popularity as the economic situation began to improve again toward the middle of the 18th century. As in contemporary England, an increase in agricultural productivity stimulated a population increase, especially in rural areas. This, in turn, spurred the development of various industries. The agricultural transformation occurred mainly on the small farms of Flanders; one of its main features was the spread of potato cultivation, which added an important element to the diet of the rural population. In addition, in the French-speaking part of the country, a number of landed proprietors invested in mining enterprises, notably in the area between the Sambre and the Meuse rivers, which belonged to the principality of Liège. In the southern Netherlands, urban merchants and manufacturers had more in common with the rural landowning class than was usual in continental European countries in the 18th century. As in the case of Britain, this created an atmosphere favourable to the development of industrial capitalism. During this period Ghent, Antwerp, and Tournai had factories with more than 100 workers; wages, however, were poor. Verviers, in the principality of Liège, was an important centre for woolen manufactures, Ghent for cotton goods.

After 1750 the influence of the Enlightenment permeated government policy in the domains of demography, social relief, employment, public health, education, religion, culture, and art, mainly at the expense of the Roman Catholic Church. Religious suppression and administrative reforms, sponsored by Maria Theresa’s son and successor, the emperor Joseph II, caused great dissatisfaction among the upper classes. The Austrian government was no longer inclined to maintain the remnants of feudal privilege. Reforms deepened to include replacement of the traditional provinces and their aristocracies by districts and newly appointed intendants. The proposal to suppress simultaneously the central councils and the provincial courts of justice constituted a clear threat to provincial autonomy. The governor-general of the Austrian Netherlands was reluctant to enforce the edicts involved, but other leading members of the administration, including the emperor’s minister plenipotentiary, insisted upon the abolishment of the traditional bodies.

In 1789, stirred by the outbreak of revolution in neighbouring France, conservatives led by Henri van der Noot and progressives led by Jean-François Vonck united in opposition to the emperor and defeated an Austrian force at Turnhout. After their common victory, conservatives and progressives came into conflict. The conservatives, or Statists, in the end gained the upper hand and made a triumphant entry into Brussels. This “Brabant Revolution” (so called because most of its leaders came from Brabant) had widespread support in the towns. The peasants, on the other hand, had little in common with the middle-class revolutionaries and generally supported the Austrians. Thus, when Leopold II, successor to Joseph II, decided to reestablish imperial authority in 1790, he encountered no opposition from the mass of the people. On Dec. 2, 1790, imperial troops reoccupied Brussels. The discontented Statists now looked to revolutionary France for support, but enthusiasm waned when it became clear that a French military victory was the prelude to annexation. On Oct. 1, 1795, the French National Convention voted to annex the southern Netherlands and the principality of Liège, where a revolution against the prince-bishop had prepared the country for assimilation into the French Republic. Thenceforth, the territory of Liège was amalgamated with the Belgian provinces.

French administration

Under French rule there was no autonomy as there had been under the Spanish and Austrian regimes. The administration was centralized, aristocratic privileges abolished, and the church persecuted. Military conscription measures provoked a peasants’ revolt (1798–99), but repression was extremely harsh. Under the Napoleonic consulate and empire (1799–1814), the position of the clergy was regulated by a concordat with the papacy. Further changes included introduction of the French civil code and the decimal metric system and the reopening of the Schelde River to maritime traffic to and from the harbour of Antwerp.

The period of the Napoleonic empire may be considered the beginning of the Industrial Revolution in Belgium. Only at the very end of the 18th century, with the prospects of a wider market and under Napoleon’s encouragement, did mechanization (i.e., the Industrial Revolution in its strictest sense) begin in the textile sector. Mechanization quickly made Ghent, with its cotton mills, and Verviers, with its woolen industry, the leading textile centres of the country. The coal and metal industries of Hainaut (under French rule, the département of Jemappes) and Liège also flourished. From the beginning of the 18th century, the coal industry had expanded production with the help of the Newcomen pump and systematically extended its export markets to France (see Thomas Newcomen). Annexation of the Belgian provinces by France opened the market still further, hastening the modernization process in which Belgium already led the continent.

The Kingdom of the Netherlands

After the defeat of Napoleon, the Allied powers were determined not to leave the Belgian territories in the hands of France. Under the influence of Great Britain, it was decided that the territories would be united in a single state with the old republic of the United Provinces, thus to constitute a better barrier against French expansion than that of 1715. The Kingdom of the Netherlands, the existence of which was confirmed by the Congress of Vienna (June 1815), was thus established for the convenience of Europe, regardless of the wishes of the Belgians and the Dutch. Prince William of Orange ascended the throne on March 16, 1815, under the title William I; he was crowned September 27.

The two parts of the Netherlands, which had been one country until the 16th century and were now reunited, had developed in markedly different ways during the two intervening centuries. The north was commercial and the south increasingly industrial; the north was Protestant and Flemish- (Dutch-) speaking and the south Roman Catholic and partly French-speaking (the elite was entirely French-speaking). Under the Dutch house of Orange, the north was to be predominant. Dutch, sometimes called Netherlandic, became the official language of the new kingdom; moreover, the fundamental law gave Belgium and Holland the same number of representatives in the States General, in spite of the fact that the population of Belgium was nearly twice that of the former United Provinces. Belgian representatives, members of the nobility, rejected the constitution, but it was promulgated by the king over their objections.

William I encouraged the industrialization of the south, commissioning the construction of new roads and canals and the establishment of new commercial and financial companies; he also extended subsidies to promising industrial enterprises, frequently from his own private fortune. In the beginning, the favourable economic situation reinforced the king’s popularity among the middle class. The mechanized textile industries of Ghent and Verviers continued their progress, while the modern coal mines and forges of Liège and Hainaut prospered. Antwerp’s role as an international port was expanding rapidly.

King William I also created three state universities: Ghent and Liège, which were new, and Louvain, which he put under state control to remove it from Catholic influence. Secular academies (athénées) were established at the secondary level, and state inspection was mandated for church-controlled schools. An attempt to interfere with the curriculum of the training schools for priests (1825) brought clerical dissatisfaction with the government to its height. In an effort to disengage the Protestant monarch from the religious affairs of the south, the clergy and traditional Catholic elite began clamouring for freedom of religion, education, and association. This remarkable shift in mentality within the ranks of the southern conservatives was welcomed by the more progressive merchants, who in their turn had grown more critical toward the north and the king’s policy.

After 1821 the conflicting interests of north and south also created an economic split. The commercial north, having little industry, desired more free trade; the industrial south sought greater tariff protection in order to compete against falling British export prices. The king’s unwillingness to increase protection gave the industrialists a grievance against the government. Progressives and clericals now joined forces. Both groups wanted to curtail the personal power of the king in favour of a true parliamentary system, based on an expanded range of civil and political rights. In this new climate, Unionism came into being in 1827, merging young Catholics and liberals in the south into a strong antigovernment coalition. The king agreed to make concessions regarding matters of religion and language but refused to relinquish his ultimate authority. This refusal generated the “Belgian Revolution” of August–September 1830, in the tracks of the July Revolution in Paris the same year.

The revolutionaries at first demanded separate administrations for the northern and southern Netherlands. The actions of the radical patriots in Liège, however, soon aggravated the situation. The unyielding attitude of the king now led to a complete break. On September 25 a provisional Belgian government was established, and on October 4 it proclaimed the country’s independence, a move reaffirmed by the newly elected National Congress on November 10. William I prepared for war, but on December 20 the great powers intervened, imposing an armistice on both sides. On Jan. 20, 1831, an international conference in London (under the influence of the new liberal governments in France and Britain) recognized Belgium as an independent, neutral state, its neutrality to be guaranteed by the European powers.

Independent Belgium before World War I

The National Congress had decided that Belgium should be a monarchy, but finding a king proved difficult. In the end, Prince Leopold of Saxe-Coburg, who was related to the British royal family and who became engaged to the daughter of the French king, was acceptable to both Britain and France. On July 21, 1831, Leopold ascended the throne, promising to support the liberal constitution, which gave the greater part of the governing power to a parliament elected by property owners. Some days later, the Dutch army invaded Belgium. The Belgians, who had no regular army, were defeated, but the London Conference agreed to intervention by the French army, which forced the Dutch to withdraw. The conference then decided to divide the provinces of Limburg and Luxembourg, assigning part to Belgium and part to the Netherlands. William I refused to accept this settlement. The Belgians, therefore, continued to occupy Dutch Limburg and Luxembourg until William finally relented in 1838. The eastern half of Luxembourg became the Grand Duchy of Luxembourg, while the western half became a Belgian province. In 1839 the Dutch government officially recognized Belgium in its borders of 1838.

In the short run, the revolution had a detrimental effect on the economy. Separation from the north resulted in the sudden loss of the large Dutch market, including the colonies. The Schelde River remained closed until 1839. The Belgian government addressed the crisis by launching a vigorous policy of internal investment. In 1835 it inaugurated a railroad line between Brussels and Malines, the first to operate on the continent. The Antwerp-Cologne line, completed in 1843, opened great prospects for the Belgo-German transit trade. In 1844 a favourable trade agreement between Belgium and the German Zollverein (“Customs Union”) completed this strategy.

Private participation in the development program was encouraged. In the case of railroads, for example, the government restricted itself to the construction of main lines as an incentive for private enterprise to provide the secondary network. The modernization of the infrastructure, in turn, created a climate conducive to industrial investment. Belgian banks played a decisive role in the response, in particular the Société Générale, founded in 1822 by King William I, and the Banque de Belgique, founded in 1835 by Belgian liberals. Both companies provided extensive financing for the new mechanized sectors, especially those of the Walloon heavy industry. Converting these enterprises into limited companies, the banks sold shares to the public while holding enough shares in their own or their subsidiaries’ portfolios to retain control. Through this and other measures, including extension of long- and short-term credit to developing companies and the establishment of savings banks to augment resources, the Brussels banks created a new type of financial organization, the industrial banking system, which would soon be imitated by the French, the Germans, and later the English-speaking world.

While the Walloon industrial economy expanded rapidly with the infusion of capital, the mechanized textile industry in Flanders remained less dynamic. The Brussels banks exhibited little interest in this industry in the region because it was splintered over many small family enterprises. Moreover, the Ghent cotton industry faced the formidable competition of the British, and Flemish woolen producers had lost the advantage to those of Verviers and northern France. The mechanized linen mills fared better but precipitated, along with their British counterparts, a disastrous decline in the traditional linen industry based on cottage spinning and weaving throughout rural Flanders. The crisis reached a climax with the famine of 1844–46, when poor grain harvests coincided with a potato blight. The deep impoverishment of the Flemish countryside retarded the full modernization of the region until the beginning of the 20th century.

Liberal dominance

After 1839, the Unionist coalition that had consolidated the revolution showed signs of falling apart. The progressives, especially, were unhappy with the growing influence of the Roman Catholic Church and with the government, which increasingly enacted the personal policy of the monarch. In 1846 middle-class anticlericals laid the foundation for a national liberal party independent of the Unionist movement, aiming in particular at the curtailment of the church’s growing social position. Later, a Roman Catholic conservative party took shape in opposition. Thus, one of the ideological polarities of modern Belgian politics was born.

The first Liberal government came to power in 1847 and withstood the revolutionary shock wave that rocked Europe the following year (see Revolutions of 1848). Electoral reforms, hastened by international circumstances, secured the long-standing political dominance of the Liberal urban bourgeoisie.

The Liberal governments broadened the free-trade policy in order to promote industrialization and commercial expansion and lifted a number of fiscal hindrances on internal trade. The great Liberal reformer Walthère Frère-Orban took special measures to reinforce Belgium’s economic infrastructure: in 1850 he founded a central issuing bank (the National Bank of Belgium), in 1860 a public cooperative bank for municipal finances (the Communal Credit), and five years later a public savings bank (the General Savings Bank). By 1863 the prosperity of the country permitted redemption of the Netherlands’ right to levy charges on ships entering the Schelde estuary, a right enacted in 1839. The port of Antwerp was the great beneficiary, able to compete strongly with Rotterdam (Neth.) and Hamburg. Favourable trade agreements with France, Britain, and the Netherlands further stimulated the Belgian export and transit trade. The importation of grain was also fully liberalized, without noticeable objection from the agrarian pressure groups, as the prices of grain, rent, and land remained quite high until the 1870s.

On the political scene, the growing social influence of the church became a matter of passionate public debate. As the controversy mounted, the respective attitudes became more and more radicalized. Among the Liberals, anticlericalism frequently evolved into antireligiosity; among the Catholics, the defense of the church increasingly became a means to acquire political power. The Liberals, controlling the government, managed to curtail the church’s influence in such crucial domains as public charity and public education. The church successively lost its influence in the state secondary schools and in the state universities. When the Liberal government eliminated religious education from public primary schools, the so-called School War erupted. This conflict strengthened the Catholics in their distrust of the state and prompted the development of a state-independent Catholic school network, which met with great success. The School War precipitated a conservative landslide in the elections of 1884, which gave the Catholics a majority in both chambers of the parliament.

Period of Catholic government

Aside from the education controversy, the biggest factor in the Liberals’ defeat was probably their advocacy of free trade, which was favoured by manufacturers but exposed farmers to ruinous foreign competition. In the early 1880s, when the Belgian market was flooded with American grain, the Catholic Party became the champion of the rural classes by promising to protect agriculture. It also espoused the cause of the nascent Flemish movement that sought to expand opportunities for Flemish-speaking Belgians in a country until then dominated by a French-speaking upper bourgeoisie.

The last years of the 19th century and the first of the 20th were years of social tension. In 1886 there was a disturbance among workers in Liège, followed by unrest in other industrial areas. The Catholic government of Auguste-Marie-François Beernaert suppressed this movement harshly, but, beginning in 1889, a series of laws were passed regulating workers’ housing, limiting labour by women and children, and providing workmen’s compensation. Because of the system of electoral property qualifications, the working class did not have the right to vote until after the legislature revised the constitution in 1890; in 1893 universal suffrage was adopted for men age 25 and over. Though the effect of this law was weakened by giving a plural vote to electors fulfilling certain conditions of income, age, and education and to heads of families, it resulted in the election of the first Socialist deputies to the legislature. The Equality Law of 1898 made Flemish an official language, on a par with French. Social legislation benefited from the improving economic climate of the 1890s. The Flemish provinces were now fully engaged in the Industrial Revolution, the mechanization process having penetrated into the textile industries of the small towns and villages.

Belgian industry, dominated by powerful financial groups, began to assume worldwide importance and was active in Asia and Latin America, as well as in Europe. In Africa, King Leopold II acquired the Congo Free State as a personal possession in 1885. While employing brutal methods to suppress rebellion, Leopold’s regime forced the Congolese to work in mines and to gather rubber, palm oil, and ivory for export. The completion in 1898 of the Matadi-Léopoldville (now Kinshasa) railroad, which facilitated access to the interior of the Congo River basin, prompted Belgian banks to push for annexation by the Belgian government. Mounting international indignation over Leopold’s harsh rule of the Congo Free State eventually forced the king to hand over his control to the Belgian parliament in 1908.

The rivalry between France and Germany in the period 1870–1914 constituted a continuous danger to neutral Belgium. King Leopold II and his successor, King Albert I, sought vigorously to strengthen the Belgian armed forces but met resistance from the Belgian Catholic Party governments, which reflected the antimilitaristic sentiments of their grassroots constituency. In 1909 the army recruitment system, which until then had favoured the wealthy by allowing them to hire substitutes for military service, was finally reformed.

Through two world wars

Belgium and World War I

As international tensions heightened during the summer of 1914, Germany made plans to besiege France by crossing Luxembourg and Belgium, despite their neutrality. The two countries refused free passage to the German troops and were invaded on August 2 and August 4, respectively. The Belgian army retired behind the Yser (IJzer) River in the west of Flanders and held this position until 1918. During the war, the Belgian government sat at Le Havre, France, while King Albert I, as commander in chief of the army, remained with his troops in unoccupied Belgium. In 1916 the Belgian Catholic Party government was enlarged to include some Socialists and Liberals. Germany attempted to profit from Flemish-Walloon antagonism in Belgium by supporting the Flemish Activists, a radical nationalist group that accepted the German offer of assistance. Most Flemings, however, were resolutely hostile to collaboration with the enemy and refused to recognize either the Council of Flanders, founded during the occupation, or the University of Ghent, changed during the occupation from a French-language to a Flemish-language institution. (Shortly after liberation, the Belgian government made the State University of Ghent partially and then, in 1930, completely Flemish.) (See also World War I.)

The interwar period

The Treaty of Versailles (1919), ending World War I, abolished Belgium’s obligatory neutrality and returned the cantons of Eupen and Malmédy to its territory. In 1920 a treaty of military assistance was signed with France. In 1921 an economic union was concluded with Luxembourg that tied the currencies of Belgium and Luxembourg together. Belgium’s eastern frontier was guaranteed by the Pact of Locarno (1925). In Africa, Belgium received the mandate for Ruanda-Urundi, a part of German East Africa that Belgian colonial forces had occupied during World War I.

On the domestic front, political democratization and trade unionism, as well as social legislation and the Flemish movement, gathered momentum in postwar Belgium. Upon their return to Brussels in November 1918, the king and his government announced the introduction of absolute universal suffrage for all men over the age of 21, implying the abandonment of plural voting. The first elections held following this reform ended the Catholic domination of Belgian politics. Coalition governments, mostly Catholic-Liberal, were the rule in the interwar period. However, the Socialist Party, which had emerged during the social democracy movement of the late 19th century, became increasingly prominent. The anti-Bolshevist climate of the time, nonetheless, resulted in a persisting aversion to socialism among the middle class. The Belgian Socialists and the Liberals both opposed woman suffrage, regarding it as most advantageous to the Belgian Catholic Party. (Only in 1948 did Belgian women gain the right to vote in national elections.) Within the Belgian Catholic Party, the centre of gravity shifted during the interwar period from the old conservative camp to the Christian Democratic wing as Christian trade unionism experienced a significant upsurge. Both Christian Democrats and Socialists stimulated social legislation, especially during the years of Socialist participation in the government.

The Belgian economy of the interwar period faced serious difficulties. The war had caused a loss of 16 to 20 percent of the national wealth; not only had parts of the country been seriously damaged by combat, but the Germans had largely dismantled the Walloon heavy industry. Moreover, many Belgian investors had lost their capital in Russia, which had been transformed by revolution into the Soviet Union. Reconstruction proved difficult for other reasons as well. Germany was delinquent and inadequate in its payment of war reparations mandated by the Treaty of Versailles. The National Bank of Belgium, in an effort to redress the shortfall, advanced on behalf of the Belgian government the money needed for reconstruction. In so doing, however, the bank increased still further the money supply and the government’s already massive short-term debt, which had originated from the conversion into Belgian francs of the German marks circulating in Belgium at war’s end. Under such circumstances, inflation was inevitable. Soaring exchange rates generated an acute flight of capital and an imbalance of payments. Inflation also eroded the increase in real wages, which the Socialists and Christian Democrats had been able to obtain in the democratization euphoria of the immediate postwar years.

The government, which had originally hoped to restore the gold standard at its prewar parity level, soon realized that such a policy had become impossible. Increasing monetary and financial instability and fear of hyperinflation with possibly dangerous social consequences led to the formation in 1925 of a national union government, intent on restoring the gold standard but at a more realistic parity level. The reform failed, precipitating the fall of the government in March 1926. The subsequent Catholic-Liberal coalition government succeeded in restoring the gold standard on Oct. 22, 1926, at 20 percent of its prewar level. Belgian capital returned to the country, and, because of the franc’s undervaluation, much foreign capital flowed in as well. Belgian companies, infused with fresh capital, began to invest again outside Belgium, under the leadership of the mixed banks. The discovery of rich mineral deposits in the Belgian Congo made colonial development schemes increasingly attractive. Large-scale investments in southeastern and south-central Europe partly replaced the lost Russian accounts. Owing to the franc’s undervaluation, the export industries in Flanders and Wallonia also were booming. The overall prosperity generated speculative excesses, particularly on the Brussels Exchange, which was now an important capital market.

The perceived neglect of and discrimination against Flemish soldiers at the Yser front during the war, coupled with the lack of official response to postwar Flemish demands, caused a marked shift to the right among many Flemings. In 1930 the Belgian government acquiesced somewhat to the pressure, making Flanders and Wallonia legally unilingual regions, with only Brussels and its surroundings remaining bilingual. The arrangement left the linguistic borders unfixed, the government’s hope being that the Frenchification of central Belgium would continue and allow eventually for enlargement of the French-speaking region.

The Belgian economy was, of course, jolted by the stock market crash of 1929 in the United States, but Britain’s decision two years later to abandon the gold standard and allow the pound to float affected the country much more severely. Still traumatized by the experience of the 1920s, the Belgian government decided to maintain the gold parity of 1926, which left the franc seriously overvalued as the pound sterling and dollar fell. Belgian exports declined sharply, as did business profits and investments, while unemployment soared, heightening the atmosphere of social unrest. Only in March 1935 would the government abandon its policy of maintaining the franc at its 1926 level; the gold value of the franc was devalued by 28 percent.

With the onset of the Great Depression, the Socialist Party advocated a program of economic planning in accordance with the ideas of the socialist theorist Hendrik de Man. At the same time, there emerged two Belgian parties: a strictly Flemish party that enjoyed little success and the broader-based Rexists under the leadership of Léon Degrelle. The latter party won 21 seats, more than 10 percent of the chamber, in the elections of 1936. Strikes broke out in the same year and led the tripartite government of Paul van Zeeland to establish paid holidays for workers and a 40-hour workweek for miners. Also in 1936, the first National Labour Convention marked the starting point of an institutionalized dialogue between the so-called social partners (employers, trade unions, and government).

Meanwhile, King Leopold III, who succeeded his father, Albert I, in 1934, faced an increasingly tense international situation. Leopold advocated a policy of neutrality aimed at keeping Belgium from the seemingly inevitable conflict. Although this policy was approved by the parliament, Belgium, in its determination to resist all aggression, constructed a line of defense from Namur to Antwerp.

Nazi occupation

On May 10, 1940, Germany invaded Belgium, Luxembourg, and the Netherlands. The Netherlands capitulated after 6 days, Belgium after 18. France, which along with Britain had sent troops to Belgium, had to lay down arms three weeks later. The British troops, covered by the Belgian army, retreated from Dunkirk, France, in particularly dramatic circumstances. The Belgian government fled the country, first to France, in hopes of being able to return to occupied Belgium, and later to London. King Leopold III, commander in chief of the army, refused to follow the government and was taken prisoner by the Germans and confined to his palace at Laeken. The four years of ensuing Nazi occupation were distinguished by a growing resistance organization. When the Allied forces reached Belgium on Sept. 3, 1944, the Belgian underground army was able to prevent the destruction of the port of Antwerp, which served as the most important continental provisioning point for Allied troops for the remainder of the war. (See also World War II.)

Belgium after World War II

Because of the limited extent of its war damage, estimated at only 8 percent of the national wealth, and the implementation of a vigorous government policy, Belgium experienced a remarkable economic resurgence in the early postwar years. Monetary reform kept inflation under control, and liberalization of the domestic economy quickly returned the market mechanisms to the centre of the industrial, agricultural, and commercial activities. In the climate of recovery, social legislation won the support of both unions and employers.

The investigation of wartime economic and especially political collaboration with Germany resulted in large-scale purges and the detention of many citizens. The extreme rightist parties disappeared from the political scene. The Communist Party, having identified very early with the resistance movement, experienced a short-lived growth, taking part in coalition governments between 1944 and 1947; the anticommunist reflex during the Cold War brought this interlude to an end.

Despite the economic revival, political stability deteriorated, notably over the “royal question.” In 1944, at the time of the Allied offensive, the Germans had transferred King Leopold III to Austria, where he was held until 1945. The government, upon returning to Brussels in early September 1944, conferred the regency on the king’s brother, Prince Charles. After the war Leopold remained in exile in Switzerland until the “royal question” could be resolved. Generally speaking, the Flemish were the king’s partisans and the Walloons his opponents. The Christian Democrats favoured the king’s return, while the Socialists and Liberals opposed it. In 1950 a referendum showed that nearly 58 percent of the voters approved of the return of the sovereign, but the king’s arrival that year signaled virtual civil war in the Walloon country. In August 1950 Leopold appointed his eldest son, Prince Baudouin, to rule temporarily in his place. In July 1951 he abdicated, and Baudouin officially assumed the title of king.

The composition of the government continued to fluctuate, although from the 1950s onward the Christian Democrats maintained a continuous presence, often in coalition with the Socialists. Various nationalist parties emerged—a Flemish one in 1954 and two French-language parties in the 1960s. Eventually the three traditional parties—the Social Christians, the Liberals, and the Socialists—each split along linguistic lines, rendering the political decision-making process increasingly complicated.

The policy of the postwar Belgian governments, apart from the “royal question” settled in 1951, was dominated by five major issues: consolidation of the mixed economy, the ideological controversy concerning education, the process of decolonization, the matter of language and regional autonomy, and Belgium’s role in the new postwar supranational organizations. In 1948 Belgium joined with the Netherlands and Luxembourg in the Benelux Economic Union, which had been conceived in 1944 in London. The country became a signatory of the North Atlantic Treaty Organization (NATO) in 1949 and three years later joined the European Coal and Steel Community. In 1957 Belgium signed the Treaties of Rome, which it had helped to formulate, becoming a member of both the European Economic Community (later the European Community, which was embedded in and ultimately replaced by the European Union [EU]) and the European Atomic Energy Community.

During the late 1950s, growing opposition to colonial rule in the Belgian Congo led to large-scale demonstrations in Léopoldville. The Belgian government accelerated the process of political emancipation of its colonies, granting independence to the Congo (now the Democratic Republic of the Congo) in June 1960 and to Ruanda-Urundi (now the countries of Rwanda and Burundi) in July 1962.

The education controversy became critical once again in the second half of the 1950s. The Socialist-Liberal coalition simultaneously cut subsidies to private (mainly Catholic) secondary schools and promoted a major extension of the state’s secondary education system. After the defeat of the Socialists and Liberals in the 1958 election, a “School Pact” was signed under the initiative of the new Social Christian prime minister, Gaston Eyskens. This compromise measure, which authorized extension of the state secondary schools while guaranteeing conditional state subsidies for their private counterparts, marked the onset of an enduring ideological pacification in the country.

Following the “miracle recovery” of the late 1940s, Belgium’s economic surge subsided. The consolidation of the mixed economy, aimed at linking economic growth with a more equitable distribution of income and with an increase in the supply of public goods and social benefits, had been successful, but at the cost of rising wages and a heavier tax burden. Continued reliance on the aging Walloon heavy industry, coupled with a declining investment rate, seriously compromised the competitive power of the Belgian economy, reducing its growth rate to a level near that of Britain’s.

Participation in the European customs union from 1958 gradually reversed the unfavourable economic trend by enlarging the market for Belgian products. An explicit expansion policy by the government was also a contributing factor. Prime Minister Eyskens reformed the state finances and launched an active policy of regional economic development in 1959. The Flemish sector, unencumbered by the rigid industrial structure that characterized Wallonia, attracted foreign investment on a large scale from the United States, from Belgium’s European Community partners, and subsequently from Japan. Meanwhile, it was generous state subsidies that kept Walloon heavy industry alive.

The growing economic disparity between the two regions intensified dissatisfaction with the unitary state system. The Flemings opposed subsidizing an ailing regional economy that lacked any prospect of structural industrial reform. The Walloons, in turn, feared that the more numerous and prosperous Flemings would soon dominate the state. Linguistic and economic tensions were now inextricable. As a consequence of massive strikes in Wallonia in early 1961, an immovable linguistic border was defined by an act of parliament in 1962–63, and a new special arrangement was elaborated for the bilingual area around Brussels.

Federalized Belgium

After tensions led to the division of the still bilingual University of Louvain into a Flemish-speaking campus on Flemish territory and a French-speaking campus on Walloon territory in 1969–70, a slow but definitive process of federalization got under way. The parliament accorded cultural autonomy to the Flemish and Walloon regions in 1971. A revision of the constitution nine years later allowed for the creation of an independent administration within each region. Another revision of the constitution in 1988–89 extended regional autonomy to encompass the economy and education. It also gave the bilingual metropolitan area of Brussels the status of a third independent region with its own administration and changed Belgium explicitly into a federal state. This transformation was finalized with the St. Michael’s Agreement (September 1992), which also called for the division of Brabant into two provinces (Flemish Brabant and Walloon Brabant).

The acceleration of the federalization process during the 1980s was influenced to a large extent by economic factors. The oil crises of 1973 and 1979–80 and the ensuing world recession stunned Belgium’s decidedly open economy. A coalition government formed in 1981 by the Liberals and the Social Christians pursued a program of restrictive monetarism and structural reform: the Belgian franc was devalued (1982), and the increase in the money supply was brought under control by cutting public services and by ending governmental subsidies to the old industries. Within three years Belgian industry had regained its competitiveness, owing to a combination of government policy, improvement in the world economy, and the dynamism of Europe as it moved toward a more complete economic unification.

King Baudouin, who played a role in maintaining national unity by pacifying the contentious Flemish- and French-speaking communities, died on July 31, 1993. He was succeeded by his brother, Albert II. During the 1990s, Belgium continued to struggle with its so-called language problem. Struggles over the nature and form of power devolution to language regions and communities attracted significant attention, and the federalization of so many aspects of Belgian political and social life promoted linguistic regionalism. Some even began to question whether Belgium can or should remain a single state.

At the same time, Belgium’s immigrant population grew during the 1990s—bolstered by an influx of refugees, first from unrest in Bosnia and then from that in Kosovo. There was evidence of growing social tension related to this influx, and during the early 1990s anti-immigrant groups gained greater support—only to see that support fade somewhat by the end of the decade. Indeed, in 2000 the Belgian government offered an amnesty to illegal immigrants who had resided in Belgium for a minimum number of years. Moreover, in 2006 a large demonstration against racism in Antwerp, prompted by the murder in May of a Malian nanny and a Belgian toddler, revealed the dedication of many Belgians to a multicultural society.

Several laws passed in the early 21st century further reflected reformist attitudes. Gay marriage became legal; same-sex couples were permitted to adopt children; the private use of cannabis was decriminalized; and euthanasia was legalized.

The central role of Belgium (particularly Brussels) in the European unity project became more apparent, with massive urban renewal projects initiated in Brussels to make room for the expanding EU administrative corps. Brussels increasingly has assumed the role of administrative “Capital of Europe,” giving that city a special role in international affairs and providing an antidote to the growing internal fragmentation of Belgium itself. In the process, Belgians tended to define their interests increasingly in international terms.

In 2007 the continued existence of a federalized Belgium was called into question after the Flemish Christian Democrats, victors in the June parliamentary elections, failed to form a governing coalition. After six months of political deadlock that threatened to end in the breakup of the country, King Albert II asked caretaker prime minister Guy Verhofstadt, head of the defeated Flemish Liberals and Democrats, to form an interim government. A new coalition government, made up of five French- and Flemish-speaking parties and led by the Flemish Christian Democrat Yves Leterme, finally took power in March 2008.

Leterme pledged to increase the governmental powers of the country’s regions but was met with resistance from French-speaking parties, who saw the reforms as more beneficial to Flanders than to Wallonia. In July of that year Leterme offered to step down as prime minister, but the king rejected the resignation. Political turmoil—fueled by allegations of the government’s questionable involvement in the bailout and sale of the Belgian portion of a financial firm—continued through the end of 2008.

In December Leterme resigned, and Herman Van Rompuy, a fellow Flemish Christian Democrat respected for his skills as a mediator, replaced him as prime minister. Van Rompuy’s term was short-lived; in November 2009 he was named the first president of the EU’s European Council. Compelled to fill the post of prime minister yet again, King Albert nominated Leterme, who began his second term—what some called a second chance—on Nov. 25, 2009. Not five months later, on April 22, 2010, Leterme tendered his resignation once again, following the withdrawal of the Flemish Liberals and Democrats from the governing coalition.

In the election that followed in June 2010, the big winners were the separatist New Flemish Alliance, which finished first with 27 seats (a gain of 19 seats), and the French-speaking Socialists, who added 6 seats to reach a total of 26 seats, though the nature of the coalition that would govern remained to be determined. The various parties were unable to come to an agreement as coalition talks continued for more than a year while Leterme oversaw a caretaker administration. In the meantime, some Belgians wryly took solace in their country’s capture of the modern world record for the number of days spent without a formal government. Despite having no formal government, in July 2011 Belgium became the second country in the EU to approve legislation that outlawed face coverings such as the Islamic veil.